Thomas Bridge 07 April 2015

Council tax court cases climb by a quarter

Half a million more people have been summoned to court over unpaid council tax in the past year, figures reveal.

Freedom of Information requests from group False Economy show three million people were taken to court by England’s town halls over 2013/14 because they had not paid council tax, a 25% increase on the previous tax year - the Independent reports.

Campaigners blamed the rise on the abolition of council tax benefits, which previously protected the poor or unemployed from paying the levy. Local authorities saw the national system replaced with locally devised council tax support (CTS) two years ago, as funding was devolved and cut by 10%.

The data came as a report from the New Policy Institute found council tax discounts being offered to poorer households were being cut by local authorities for the third year running. Over two million of the lowest earning families are now thought to be paying £167 more every year in council tax than they were in 2010.

Chaminda Jayanetti, a researcher at False Economy, said: ‘Council tax support cuts have caused chaos for households, and for councils. They are leaving people out of pocket and in debt, which is also bad for local firms depending on them as customers.

‘Councils are now pursuing people through the courts for money they do not have. It is a shambles made by a cabinet of millionaires in a government that has been completely out of touch with reality.’

Local government minister Kris Hopkins said reforms to localise council tax support ‘give councils stronger incentives to support local firms, cut fraud, promote local enterprise and get people into work’.

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